City's projected deficit increases
By
Brandy Chandler-brandychandler@gmail.com
The pending general fund budget deficit the city of Hillsboro is facing by the end of 2011 was "cut" to approximately $164,000 last week. However, after meeting with city department heads, the potential deficit is now at $269,000, according to Hillsboro Auditor Gary Lewis.
The finance committee of the Hillsboro City Council met Tuesday to further discuss the budget issues, and heard Lewis and Hillsboro Safety and Service Director Ralph Holt report on their meetings with the heads of the general fund offices, which includes the administration, the auditor's office, police and fire departments, tax office, law director's office and Hillsboro Municipal Court.
Earlier this month, after receiving requests from department heads, the projected deficit was estimated to be as high as $730,000. During a meeting held last Tuesday, it was reported that it had been decreased to $164,000.
Earlier this month, after receiving requests from department heads, the projected deficit was estimated to be as high as $730,000. During a meeting held last Tuesday, it was reported that it had been decreased to $164,000.
"Can I ask where the uptick came from?" asked finance committee chairman Peter Pence.
"It was from police and fire," Holt said, but it was not specified what had upped the deficit.
Council did not ask a follow-up question on the issue.
Lewis said that in speaking to Hillsboro Law Director Fred Beery and Hillsboro Municipal Court Judge David McKenna, they would not be making decreases in their budget, as they felt they were already operating at a minimum. Lewis said that McKenna had pointed out that employees in his office work less than 40 hours a week to cut down on costs.
Councilman David Shoemaker asked Lewis if he had made cuts in his office. Lewis said he had budgeted cuts, but not yet implemented them.
Mayor Dick Zink asked Lewis to make sure that all department heads turned in a synopsis of all the cuts they had made, "That way I know what they - what you - have done."
Lewis said he would file an extension to turn in the city's tax budget to the Highland County commissioners. Lewis said he would not have time to get all the figures together, but also that he didn't want to wait too long to get it in.
"I still need to see what you (council) want me to do," Lewis said.
Shoemaker asked Lewis if council should be considering what they would like the carryover to be for the 2012 budget. Pence said that that the city was working just to get the budget to zero, without a deficit; however, they would need some carryover. Shoemaker asked Lewis if he could project numbers to show what would need to happen in order to achieve a certain carryover. Lewis said he could do that.
"It might not be feasible," Holt said, and Lewis agreed.
Shoemaker asked Pence what amount carryover the city should strive for, and he said around $450,000. Lewis said he would work on those numbers.
The projected carryover from 2010 to 2011 is estimated between $322,000 and $350,000. Council member Bill Alexander said he would like to see a history of the city's carryovers from previous years, as well as unencumbered balances.
Zink pointed out that in a way the carryover into 2012 may be taken care of through cost-saving measures the city has enacted, such as hiring part-time firefighters and increasing fire contracts to the county townships, and through EMS billing. Alexander asked if the contracts had been finalized and Zink said they have not.
Alexander asked Holt where the city stood on negotiating with the unions on the police and fire contracts. Holt said they would have to start around the end of this year. Zink said that for 2010, the contract had carried over with no increase to their contracts. Alexander asked Lewis if he had factored in an increase in those contracts, and he said he had not and used the 2010 numbers to project 2011.
There was also discussion regarding insurance coverage for city employees. Lewis has said he has factored an increase of 10 percent into the budget, but he has seen figures as high at 20-25 percent increases. Pence asked Zink and Holt if the city was "looking at re-doing the plans."
Zink said that he had asked Doug Wagoner, the city's insurance agent, to work on a proposal.
Shoemaker said he felt the committee should make a recommendation to the full council, which meets July 12. Shoemaker said that the numbers will always be changing, but they had to recommend something. Pence said he would call a committee meeting for Thursday at 5 p.m. so the committee could further discuss the budget and formulate a recommendation to council.
* Following the meeting, Hillsboro Safety and Service Director Ralph Holt said the city was still working on the process of putting the old safety building on North High Street up for sale. Lewis said that the sale figure had not yet been factored into the budget. According to Ohio law, the city cannot sell the building for less than 2/3 of the property's appraised value. The building has been appraised at $110,000.
* The Highland County Press asked Pence following the meeting if the finance committee would be addressing matters that have previously come through council as a manner of saving funds to balance the budget. For example, in February, council had voted to waive the three-reading rule after considering an ordinance to establish salaries and wages of department heads and assistants, rather than having them be paid overtime. After further discussion, council failed to make a motion on the legislation, and it died for lack of a vote.
Lewis said the ordinance would have saved the city, "approximately $50,000 based on the overtime of the previous year."
Pence said Tuesday that since the ordinance failed, council would not be re-addressing it unless it was officially brought before council again. When asked if he would change his vote on the legislation, considering the current economic and budget situation the city is in, Pence said, "I can't really say. It depends on if we look at it again. But everything has to be looked at."
When asked to comment on the same question, Shoemaker said he could not make a decision until he saw current figures regarding the ordinance, and compare them to the current budget numbers. "Until it comes up again, it's a moot point, and then I would have to look at the figures before making a decision."
* In other business, the finance committee met briefly in a joint session with the street and safety committee to discuss a recommendation from Holt and Zink regarding turning off a number of street lights, as the projected amount of the city's bill exceeds the amount the city has budgeted. Holt said he had contacted American Electric Power but had not yet heard back from them to see if there would be costs associated with turning off the lights. Pence said that without those figures the committees could not recommend a course of action.
"We'll have to just let the administration proceed as normal until we get the information," Shoemaker said.
"What happens when we get down to the last of the allotted funds?" Holt asked.
"That will be your call," Pence said.
Holt said that it would not be his call, because council had approved the budget for the lights. "You gave me the money, it's your call," Holt said.
"My position, right now, is there is nothing to consider if we don't have the information," Pence said, and the committees voted to adjourn the meeting.
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